Hello everyone!
I am undertaking my final undergraduate thesis based on 'Trade Effects of SADC and COMESA'. My study consists of period of 1995 - 2015 with 25 countries showing their bilateral trade flows as dependent variable and independent variables consist of GDP, Population size (both for exporter and importer), distance with dummy variables like Common Border, Common Language, landlocked countries, and dummy variables for SADC and COMESA analysing for trade creation and trade diversion.
Being grateful to all the members who replied to me in my previous posts, I shall be using the ppml model for my gravity model analysis. However, my supervisor told me to generate all the dummies directly in excel (Which I already did) and in STATA to do direct tests related to my study (as I am an absolute beginner in STATA and he wants to get my analysis part by the end of the week).
So I wanted to ask whether it is okay if I have feed in my dummy variables in excel directly?
He told me vaguely what I can do after setting my dataset in panel:
1. Fixed Effects
2. Random Effects
3. Hausman
4. ppml regression with fixed or random effects
5. Interpretation
I was wondering whether is it the correct process or it will cause me some difficulties o there are other elements to test or add? Being a comple novice in econometric analysis, I wanted to request whether the above is normal order to proceed? I also wanted to perform a heteroskedasticity test to enhance my choice of using PPML. I also wanted to know what are the main areas to interpret (coefficients etc and tests in STATA) as to be frank, I only know when there is trade creation and trade diversion.
I have attached my data-set from excel in case it is necessarily.
Thank you very much for all the help and patience!
Apologies for any inconveniences caused.
I am undertaking my final undergraduate thesis based on 'Trade Effects of SADC and COMESA'. My study consists of period of 1995 - 2015 with 25 countries showing their bilateral trade flows as dependent variable and independent variables consist of GDP, Population size (both for exporter and importer), distance with dummy variables like Common Border, Common Language, landlocked countries, and dummy variables for SADC and COMESA analysing for trade creation and trade diversion.
Being grateful to all the members who replied to me in my previous posts, I shall be using the ppml model for my gravity model analysis. However, my supervisor told me to generate all the dummies directly in excel (Which I already did) and in STATA to do direct tests related to my study (as I am an absolute beginner in STATA and he wants to get my analysis part by the end of the week).
So I wanted to ask whether it is okay if I have feed in my dummy variables in excel directly?
He told me vaguely what I can do after setting my dataset in panel:
1. Fixed Effects
2. Random Effects
3. Hausman
4. ppml regression with fixed or random effects
5. Interpretation
I was wondering whether is it the correct process or it will cause me some difficulties o there are other elements to test or add? Being a comple novice in econometric analysis, I wanted to request whether the above is normal order to proceed? I also wanted to perform a heteroskedasticity test to enhance my choice of using PPML. I also wanted to know what are the main areas to interpret (coefficients etc and tests in STATA) as to be frank, I only know when there is trade creation and trade diversion.
I have attached my data-set from excel in case it is necessarily.
Thank you very much for all the help and patience!
Apologies for any inconveniences caused.
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